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tv   Power Lunch  CNBC  April 28, 2014 1:00pm-2:01pm EDT

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>> you see the nasdaq is worsening a bit, and certainly the markets will be followed closely for the rest of this day. that does it for us. follow me on twitter. there is, of course, more "fast money" this even evening at 5:00. "power lunch" begins right now. halftime is over. the second half of your trading day begins now. as the stock market turns, a big turnaround, the dow was up 138 points, you see the steep drop. there it is. there is where we stand right now, up about 43 points on the dow jones industrial average. so what is your next move? the person in charge of investing for deutsche bank, the chief investment officer for that giant multinational company tells us what he likes right now. he's making choices. should you follow it? a person convicted of data and identity theft is back on the street with a short fund.
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he's identifying companies vulnerable to hackers, and then shorting the stock. is it legal? is it a plausible strategy? is it good business? meet him and a former s.e.c. enforcement attorney. it's kind of a rough day here. tyler told you about the dow, but we're going to focus in specifically on the nasdaq and the s&p. right now we have the s&p trading on the minus side basically by just about 2.75 points. the nasdaq is down 37, almost a full%. the russell 2,000 is off 1.25%. the etf that follows those stocks. and you can see that with the exception of the dow spdr, they're all in the red. the transports have had a very rough weak session and a half, i guess, for the last couple
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sessions. we're down another 23 points, so it's not been a good start to the week there. bob pisani joins me, and art cashing pointing out that the nasdaq basically didn't wait for europe to close before it got a bit to the down side. >> the dow, as i know tyler just had it up, there's not a lot of catalyst for the decline we've seen in the internet stocks today overall. it's simply a problem with the continuation we saw last thursday or friday, so the old internet stocks, yelp, zynga, facebook, we could go down the list here, but i want to contrast this to new tech, sue, and put up the old tech names. apple microsoft, you see what i'm talking about? implts yeah. old is new again. >> exactly i bflt m is considered a value stock these days, by the way, so that's part of the problem, the continued
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sell jot in the internet names. the investment banks are a problem, too. financials are weak. i don't want to just blame everything on internet stocks. they suspended their capital,s and redismissing their plans, but they're also to the weak side. so very defensive tone. take a look at telecom, staples, utilities, reits. all those are notably to the up side. there will be some of the consumer staple names as well. so there's nothing really obvious. we had some health care m & a we spend time on on "squawk on the street", and spending home sales numbers that briefly lifted the markets, just not enough. >> but rotating out of the new back into the old. thank you, bob. >> he, dom. >> another step in that rotations story, another tough day, you talk about the opposite or cal d. think priceline,
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amazon, tesla, twitter, if it's a momentum stock, it's pretty much taking it on the chin. let's highlight netflix as well. the stock is down more than 30% since sitting the all-time high of $458 back in the beginning of march. that rotation from out of the new tech into old tech is playing out specifically in those names. back over to you. >> thank you, dominic. the past several weeks we have been focusing very specifically on the so-called momentum stocks. stocks that move woust news. they move down, because people want to sell them. now expect news on many of these stocks, as they begin to report quarterly numbers. seema mody? >> that's right. still to come this earnings season, reports from a few high-profile companies.
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investors will be watching to see if the companies have what it takes to recover from their recent falls. twitter, which is down over 40% since december of 2013 records earnings on tuesday after the bell, that's tomorrow. aside from sales and earnings growth, analysts say the key metrics will be earnings growth and whether those can support the lofty multipallets. linked in reporting on thursday, on revenue of $467 million, which would be a 44% jump. with over 300 million members gallonly, analysts will be looking for guidance on how the professional network plans to monetize on the international base. lastly online travel giant expedia will report on thursday. down about 29% since the february high as more users migrate to mobile, analysts will be looking to how many customers are using expedia's mobile app.. experts say if these companies are able to beat estimates and
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provide upbeat guidance, sentiment may change. tyler? >> seema, thank you very much. pending home sales picking up in march, the first jump since last june. national association of realtors says their sale index was up 3.4%, but still far below where it was a year ago, but that's not even the big housing news of the day. surprise me, diana. shock me. >> i will do my best, tyler. look, march numbers were better than expected, but far weaker than a year ago. that as analysts revising down dramatically. their total sales numbers for 2014. they had ago many as between 5.25 and 5.75. they're now estimating between 4.75 and 5. why? some bad weather at the beginning of the year, but really it's about weakened affordable and shift from all-cash investors to the credit dependent regular buyers. they're not revising their price estimates, which continue to
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gain, in certainly markets, prices have actually hit new peaks, that from black knight financial. that gap is closing fast. in addition, analysts say credit is not loosening at all. they point to fha, its market share went from over 40% in 2012 to 22% today, despite a drop in the average fico score. that's because premiums went up. it all goes back to affordability. that again is why analysts are revising if estimates lower. sue? thank you very much, diana. overseas the mayor of ukraine's second largest city gunned down on the street. reports say he was riding his bike when eyewitnesses say multiple gunmen opened fire. he was hit in the back. the last report we received is he was in surgery. all this on the heels of new
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sanctions, and robert frank reporting on the new sanctions today from washington targeting russians. we'll talk about that in a moment. first to kate kelly on u.s. companies with energy ties to russia. >> expanses sanctions today in russia that you just mentioned are the latest potential blow to multinational companies doing business there. some of the stocks involved are already taking a hit. the most obvious point of tension is the energy sector. the sanctioning today of igor accept chin, who running the largest company, could have bp owns nearly 20% of it, and royal dutch shell is another with ties to the russian energy business, albeit with stronger exposure on the natural gas side. in the financial arena, credit card companies like visa and mastercard, which have been forced to stop processing
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payments through certain russian banks are already taking a market hit. we heard on friday from visa it that the session ways should shave pencies off the earnings and banks may be affected, too, including stu group, which counts russia as a major regional market, and morgan stanley. not so much an earnings hit, but it could affect that deal. finally consumers names like the beverage makers, pepsico is and co, while having a much smaller exposure still has a toehold in bottling there and spent heavily on the sochi olympics from a marketing standpoint. >> obviously the ripple effects are still to be felt from that particular part of the story. to robert frank with more on the specific sanctions. >> in terms of the companies there could be issues here, but in terms of putin's money, this was a slight tightening of the
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noose. there were no new billionaires targeted with today's sanctions. all seven people slapped with travel bans are political leaders close to putin. there are, hour two prominent being people. igor sechin, but rosenft was not sanctioned. the company will continue to have banks tim chengo said he sold that stake before the last round of sanctions, but the white house was suggesting that others would be mentioned today, but they were not in fact on today's list. perhaps maybe they didn't have
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proof linking them, or they may be saving them for a later round, but for nour, most of them are breathing a side of relief today. we'll see what the european reaction is. >> a lot more affected, absolutely. ty, up to you. sue, terrible tornadoes ripping through the south this weekend. storm chasers, people just caught in the path of the twisters caught the tornadoes on tape. look at that. the tornadoes were reported in iowa, kansas, missouri, and nebraska. rescue crews are still active throughout the entire region, but so far we're told at least 16 people have died, 14 of them in arkansas. are more twisters on the way? here's the weather channel's greg postel. >> more severe weather is likely coming our way. let's have a look at the area shaded in red. ought modes are possible today -- hay, high winds, even some tornadoes. of course, the other hazards that usually go along with
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lightning and maybe some heavy rain. across a wide area of the country. let's time it now. beginning later on this afternoon, watch out, there could be some big thunderstorms rolling through there that could be tornado producers. stay tuned for the rapidly changing weather conditions across this area, elong after dark, these storms will be moving very fast with very little time to react. tomorrow we also have a chance for severe thunderstorms in many of these same locations. against tomorrow, all modes of severe weather are possible, including hail, high winds, and even some tornadoes. so stay tuned for all the latest. back to you. >> thank you very much, greg. cnbc fed survey participants weighing in today. steve liesman has the result. interesting stuff as always. >> really unexpected. this hour we'll tell you where they stand on growth and the chance of recession. find out which way our fed gang believes the economy is rolling, rolling, rolling, rolling, next
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about -- you can see charter up handily on this bit of news. the markets have been very volatile. trouble in china, ukraine sparking fears, earnings, those are a worry. so what do problems overseas specifically mean for the u.s. economy? what kind of growth are we looking at? what are the chances of another recession? steve liesman, our senior economics reporter is here with the results of the cnbc exclusive fed survey. always interesting. >> i'm going to differentiate that in a second, but first i want to give you the good news. that good news is the estimates or probability of recession coming down. the lowest we've had in the three years we've been asking this question. we asked our 40 respondents, what do you think the response of recession is. you can see back in september 2011 it was 36%. our previous low was 15.2. you can see this time around it dropped. as you can zoom in here from 16.6%, that's a great zoom.
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sunrise job. you'll see that's the lowest we've had going across here. looking at what is the growth forecast for this year, 2.7%, which means we'll have to do better the next three quarters given the number we'll probably get, and then we see it ratcheting up to 3%. it's been pretty consistent in that area, if you look at the history of this forecast that's come out for 2014. what about geopolitical risks? we asked about china and we asked about ukraine, and what kind of impact the respondents thought we would have. 6% say almost no impact. 64%, though i will say most is in the modest impact category.
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tax and regulatory policies remain the biggest threat. there's the new where engine right there. so some of the commentary we've gotten. bob bauer writes we believe the u.s. economy is returning to normal, not a new normal, but the old normal. john donaldson thinks the improvement in the federal budget is an under-appreciated story, and stu hoffman from pnc writes in our economy has the talent and energy to step up the pace the rest of the year. tyler, you can see the actual results on, the repository of significant talent and energy. >> who are these guys, the respondents? >> economists, strategists, money managers. it's a changing panel, but in general they seem to make good, consistent -- we keep working
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until we get 40. we have a minimum on this survey. it's one of biggest of its kind, followed in places of high power, i think it's fair to say. >> thank you, steve. i think we're going to sue. >> we are certainly doing that. thank you, gentlemen. the markets were rallies today, but right now that volatility has set in with the nasdaq down 51 points. where do we go from here? we'll have one of deutsche bank's top investment guys. we'll talk about his top regions, top sectors, and investment style, all of that. the dow is holding on to a gain of 1.6 points. of 1.6 points. why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced
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[ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ welcome back to "power lunch." humphries downgraded the stock. marriott will report first quarter earnings tomorrow. the street is looking for a gain of 51 cents a share. that stock is currently down toward session lows, about 3.5% to the down side. back over to you. >> thank you, dom. >> stocks are given up their gains. s&p is flat for the year. the dow and the nasdaq, well, the dow is holding on to a gain. now it's lost 13 points. the nasdaq is accelerating its losses, down 56.
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given this volatility, how do you invest in this market? randy brown is co-chief investment officer. jim iuorio and jim kill burg assistant i by. the volatility some people expect to see ramp up. can you expect that volatility to continue? >> yes, we do expect volatility to continue. there's tremendous geopolitical risk given what's going on in russia, given the weather-related slowdown in the u.s. in the front loading of that slowdown. then what's going on in the middle east and other parts of the world. so geopolitical tensions i think are going to cause increased volatility. there's also been the technical of reed positioning. we think that may continue.
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>> you have an s&p target of 1975 for the next 12 months. how are we going to achieve that? because earnings, you know, the bar is lowered for earnings, though they came in okay, it was a pretty a essy comparison? >> yeah, we think it's going to be built on earnings increase in the back end of the year. so multiples we think are fair. we don't think it would be multiple expansion like prior years, but really built on the back of earnings growth. that's really the underlying, you know, thesis that we have, growth is returning to the markets globally, and that growth -- because corporations are very efficient, companies are very efficient, will translate more directly into bottom lines earnings growth. >> looking at the nasdaq now at session lows the that's spooking some people, moving them away from the u.s. market. as you look at things globally, where are you investing? >> well, we like europe over the u.s. right now, but we're
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positive on the u.s., as you mentioned, but we're more positive in europe. on the -- we're cautious on the emerging markets. i would say from a tactical basis. we think that they will experience heightened volatility, so longer term strategically we love the emerging markets in the equity space, but short term we're much more cautious. >> the sectors that i understand you like are consumer discretionary financials and information technology. financials are getting hit hard today on the back of b of a. would you in that type of situation, would you step into a sector like that today? >> our view typically is a little bit longer term, sue, so from the day to day timing, i would say there's going to be more volatility given what's happens in russia, in the ukraine, so today may not be the day. >> the downgrade you saw in the
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equity market was not that dramatic. i know that individual stocks have had some pretty much moves, but the market as a whole, we haven't seen a really healthy correction in a long time. >> you like the maul and mid cap stocks. all right. thank you, randy. >> thank you. ty, up to you. >> thank you, folks. rundown time. jim iuorio and jeff kill berg let's focus on the areas he -- he favors europe over the united states, and i guess in the short term over the emerging markets as well. jeff, do you agree? disagree el or what? >> randy is a smart guy, but i don't agree. i've got to push back a bit, due to the fact we're so susceptible. remember, tyler, this is the first time since world war ii they have rewritten borders in
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europe. since friday they've these military monitors as hostage? i think that's a problem. >> jim, europe or the u.s.? >> two years ago greek bond-day-old holders took a massive haircut. everyone's been piling into greek, spanish, and just an astonishing level to me. to me it seems like that's very crowded and smacks of ahn implied too big to fail sort of ecb guarantee. if anything comes into question that backstop, i think the market could fall apart there. so i think we're a -- it's scary to me. i'm not going into europe, either. >> jim, let's talk about the three sectors that randy likes -- finances, information tech t. consumer discretionary. do you have a favor? >> i do like financials the best of those three. i know it's difficult and the charts look bad, and we're seeing -- but i think they're very, very correlated to interest rates.
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>> they've gone nowhere all year. >> i know. if interest rates go up, and i believe they will, we've seen good economic data, particularly housing today, countering the bad housing. i think the recovery is bigger than people think and has -- >> the xlf, that's the etf tracking the financial all year. it's a total stalemate. i like the consumer discretionary, but we have to see what happens when people get scared and spooked. i like tech. tech is the undercurrent. if you have something here, xlk, but it's got to be cheaper. there's more anxiety coming out. >> randy said he liked small and mid capping over the big megacaps, but the money seems to have been -- lately into more of the larger companies. what do you say, jeff? >> we were taking cheap shots, but i wanted to set a lower price. we're seeing the russell 2000. the heaviest short, so people
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are anticipating lower prices, but you want to be a buyer on the way down, ty. >> we appreciate it, gills. >> thanks, ty. let's look at the precious metals in light of the deterioration of the market. we'll show you how the gold market is doing keep in mind that palladium is moving to the up side, one of the biggest exporters of the world. russia is one of the biggest exporters of palladium. the gold market may be seeing a bit of a flight to safety in today's trading session. the department of homeland security issuing a major warning for users of internet explorer. plus the gentleman you will meet went to jail for hacking. now he's out and thinks he has a fullproof and perfectly legal way to find vulnerabilities in companies and then short the stock. hear about the plan with the man right behind it, now on "power lunch." lunch." weekdays are for rising to the challenge.
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now leading the way down, you've got goldman sachs, boeing, nike, jpmorgan and disney. with the dow decliners, those are the big once leading that decline. check out what's happening with the big loser of the day here, down 1.4% among the biggest dropping in the nasdaq today. decline ease internet company baidu, it's turning into a tough day for the bulls, especially with the tech stocks and nasdaq. >> indeed, dom, sure is. there's a lot of money coming out of the equity markets, we're seeing yields drop. right now we have the ten-year note yielding 2.6%, and the 30-year bond yielding. so we are seeing a bit of a bit in the treasury market, as we see the dow jones industrial average from a pretty strong opening to now in negative
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territory. ty, up to you. sue, we're watching microsoft. the department of homeland security says users should avoid using internet explorer because of a security flaw that lets hackers launch and tacks. our jon fortt is here. this is news to me. i hadn't heard about this. >> a lot of geeks out there would say you shouldn't use i.e. anyway. but this has to do with the vulnerability in the browser itself, in the way memory can get corrupted. if a hacker tricks into going to a certain corrupted website, they can take over your computer, have access, even within your business, to all sorts of permissions, administrative permissions. >> they're going to try to fix it.
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a lot of people with questions about how will they get the older operating system browsers patched up. >> maybe you don't know this, but my assumption is hackers go after a lot of microsoft stuff, because it is so ubiquitous. is internet explorer still if the number one browser used? >> it depends on the numbers you use. stat counter has one set, net applications has another. i.e. is still big, no matter whose numbers you use. >> that's just on the pc. mobile browser is entirely different story. >> bottom line would you use it today? >> no, i would not. >> there's your answer. jon fortt, simple answer.
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sue? thank you, gentlemen. aaron acenhyper is a freeman. he was accused of hacking into at&t's website and lifting over 100,000 e-mail addresses and posted them on to the website gawker. an appeals court has overturned his conviction, which is why he's sitting right next to me. he now is setting his sights on with a new hedge funds with companies he believes are vulnerable nice to have you here. >> great to be here, sue. >> tell me how this works. you're going to set up basically a hedge fund that is going to be aggressively short some of these companies, correct? >> that's correct. our primary strategy is short equities. the underlying theme is generating financial intelligence from the computer underground and internet. there's a number of strategies, but short is definitely the most dramatic.
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the primary strategy is to identify a company that has liabilities that no one knows about yet, and so far as information security and taking a leverage position, and then releasing information on those outstanding liabilities to the public. >> i think the point of controversy will be your methodology or method of finding those vulnerabilities. as i understand it, correct me if i'm wrong, you don't hack into those companies, but you find out where their security vulnerabilities are. how will you do that? >> first we -- first we probe the public surface of a company. second we take a look and we actually watch hackers -- foreign hackers like the russian business network and find out what they're doing. there's another company in new york called consumer belt, running be elli kashet, and
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brilliant, and they do what we do, but for -- when a car company that has a car that hurts people, the stock value droppings. when a software or cloud company has a similar problem, their stock is going to drop, too. >> we reached out to noted m & a attorney, and he gave us this statement in response to your being on our air. he says essential all short sellers attempt to identify weaknesses in companies that once apparent to the market will lead to the conclusion that the shares are overvalued. different short sellers obviously yoot different metrics. what weev appears to be doing, while we might consider his approach and tactics to be somewhat slimy if if he doesn't it in a manner that is otherwise liable, i would have hope he would have taken his skills for better purposes, but obviously he is not that kind of person. that's a pretty strong statement. would you consider what you're
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doing slimy? >> no, in fact the things that people usually define as better purposes for software are either selling their software to questionable organizations or selling to the government that uses it to illegally spy on people. i am founding this fund, because i believe that the public has a right and i have a moral obligation to inform the public. i think doing the right thing at the end of the day is actually more profitable, there's better money in it. i feel slimy when i sell an exploit to somebody i know will use it to spy on people illegally. i would much rather bring it to the public's attention so consumers can make informed decisions. >> fair numb. let's bring in jacob frankel, now with the firm of issueman rogers. welcome. what do you think? >> the concept is legal, but i do have a question for andrew, which is the following. you were convicted, the appellate court throughout the case not on the underlying
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merits, which i understand you hoped would be challenged, but because it was brought in the wrong jurisdiction. from the government's perspective, it believes the underlying theory is still valid. so my question for you is why would people want to give you money at risk of being considered coconconspirators if this legal theory has not yet been tested? because in essence, they would be potential inducing you to commit the same type of violations that you were alleged to have committed once before. >> the consensus of the legal community now is that public access to public apis is legal. i've had stellar counsel, i'm sure you're aware of. think that the government knew at this point that they needed to throw it out on venue, because they didn't want to confront the cfa issue, and they knew that was an obvious just ridiculous argument by the u.s. attorney. so i think that what we do is
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legal and it's valid, and that the consensus of the law community is now with us, and i -- i plan on continuing to fight for liberty and freedom and the ability for people to tell you public -- to tell the public when they were put at risk. >> very quickly, to his point of will people give you money, the conviction was overturned, but have you raised money yet? and have you opened the fund? >> we have interested investors. our first offering will be august. i think that people want to support liberty and morality. i think it's something that goes very well in this country and will be profitable for the people involved. >> andrew, thank you for spending time with us. jacob, thank you ago well. appreciate it very much. ty, up to you. there's really no question about it. this man has changed weight and the financial capital of the world forever. he transformed the way the people of new york city live, and the way the financial industry works. you'll meet him, when "power
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welcome back to "power lunch." check out what's happening with the -- the ishares etf, ibb, at session lows here. among the big loser. bioagain, i-deck, amgen, celgene, but all think biotech names, all taking a hit. back to you. all righty. in celebration of cnbc's 25th anniversary, we have -- i'm just talking to some guests over there from catholic university. maybe we'll take a picture later. we created a list of 25 most influential and transformative
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people. including the ranks today, though, we are telling stories, consider this the appetizers portion, one wealthier men in the world who literally transformed wall street, and the cities surrounding it, but he is a member of cnbc's first 25. she's worth $33 billion, ahn unprecedented three terms as mayor of the world's financial capital. michael bloomberg has his name on a multibillion dollar company thanks to a brilliant box that changed the wall street and investors the world over do business. >> i think when mike started the business, i think it was 1981, he was thinking about what are the problems that need to be
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solved for traders, for the financial community, for wall street, and then he went after, you know, the answers. >> terry lundgren, is a personal friend of bloomberg's and worked closely with him. >> creating the machines and having the terminals on the desk in front of the trader so they could have instant answers to what was happening with the company, with the country, what was happening with a business, was just new. >> his company cornered the market in information services, and bloomberg news became one of the world's largest platforms for business news, serving tv, radio and print. >> i think he was in many ways an innovator. i think his insights into how information is consumed, disseminated, stored, has had an enormous impact in the industry. he has 145i7d a lot of what's
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transpired. >> new york city's budget is larger than many countries. for mike to build the company he did showed what type of businessman he is, and while government has many facet it is, let's not forget that it has a budget, it has a balance sheet, and running a city, a town, a state is not that unlike running a major corporation. >> he took the reins from another iconic mayor rudy giuliani just months after 9/11. >> he accomplished some major things in the city of new york, and he did so because of his broad knowledge and understanding of solving problems. he listened, he responded, he challenged, he is always thinking about what does his city need? how can this be the greatest city on earth? >> under his watch, tourism soared, the crime rate dropped, the transportation system became more efficient, and left a 2.4 billion budget surplus when his
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term ended in january of 2014. >> he made his money and then wanted to serve the public. there's a reason why he acted as mayor for as long as he did, even today commits so much of his times to philanthropic duties, but he wants to give back. this is the person that he is. when you're as rich as he is, you can probably do it. >> with elected office behind him, at age 72, bloomberg is looking to unload his vast fortune. >> say what you want about the man or his job as mayor, but what you can never dispute is his commitment to giving back and to philanthropy. >> he's pledged to give back the bulk of his billions to several causes, include anti-gun programs, education improvement, even protecting ocean wildlife. >> he now wants to make sure that that money goes to the right causes. so he's got an organization, bloomberg philanthropies that's just focused on trying to find those opportunities. how can i invest in something
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that's really going to make a difference, change the world. that's how i think he think being giving back to these various organizations. he wants to make a big, big difference in the world. and sue, really he already has. >> absolutely. >> he's one of the people on the list of 25, who was very hard to type. is he a technology guide? is he a media guy? is he a finance guy? of course he's a bit of all of those things and more, politics and philanthropist. >> it will be interesting to see years from now what his legacy is, whether it is the politician and the business person. i have my suspicions i think it might be his philanthropic endeavors. he's one of the biggest givers in the entire country, and he's extremely generous. i think that might be the larger part of his legacy. >> he hayes and is putting his money behind things that are very dear to his heart, including the fight against having too much guns in the country.
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he's not afraid of controversy, and no mayo are of new york can afford to be. you can find out where michael bloomberg and the others on our list of the first 25 rank. is he top ten? top five? we'll tell you that tomorrow. the first 25 rebels, icons and leaders, all day tomorrow beginning at 7:00 a.m. here on cnbc. you're going to be a busy man tomorrow. eat year your wheaties. many investors would think it's because pfizer wants to expand its pipeline. not so fast. the real incentive isn't quite so obvious, is it sheila? >> how about saving on your tax bill? we'll be talking about how companies legally are lowering their taxes to the opportunity -- all by -- back in two minutes, we're going to talk about all about it. "power lunch", cnbc. lunch", cn.
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financial noise financial noise financial noise
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trwith secure wifie for your business. it also comes with public wifi for your customers. not so with internet from the phone company. i would email the phone company to inquire as to why they have shortchanged these customers. but that would require wifi. switch to comcast business internet and get two wifi networks included. comcast business built for business. welcome back to "power lunch." check out shares of aol, reporting abe-mail security breach after a cyberattack compromised 2% of its accounts, e-mail addresses, postal addresses, answer toss security questions, all may have been exposed along with employees
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information. it's urging users to change passwords quickly. back over to you, sue. >> thank you very much,dom. let's head to the nasdaq. seema mody is following the big movers uptown for us. it's not a pretty picture at all. >> no, the nasdaq is underperforming, much has to do about the sell-off the internet stocks. as well as expanded capital allocation program, on to the stocks, weighs on the nasdaq. back to you. >> extra zane ka jumping today. pfizer going after the british drug rival, but forget about the big headline number. the big story may be in how much taxes pfizer could end up
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saving. sheila has a look at three u.s. companies that have been down this road. tell us about it. >> the fancy deal term is called inversion, so inversion of taxes, basically when a company buys another company, and all throughout that process can lower the tax rates. here's a bit of how it works. a company is based in the u.s., buys a foreign company, the u.s. company gives up its citizenship, and voila, they end up paying the foreign tax rate, which is often lower. here's the catch. it can add up to some meaningful savings. for example, when a mish ga dash elan, redomiciled in ireland, so the tax rate went from 30% down to 17%. that saved the company $118 million a year. or how about when actavis because chill cot last year. all thanks to the lower tax rate. of course it's not about the luck of the eye rib liberty
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global's deal of virgin media, projected to net $80 million a year, all in tax savings. so you put all of these together, we are talking nearly $275 million in tax savings, or in other words, $285 million in a tax hold that the u.s. government will need to fill. tax inversion is usually not a driving part of the deal, but it is a big one when you're talking about numbers like this. and it likely will pick up. tyler? >> thanks very much. let's see what's coming up on "street signs." i believe mandy is back. >> brian is beaming to us live from l.a., and he has tony blair, also the mayor of los angeles. for a first on cnbc interview, you must not miss this episode, all beginning at the top of the
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down 46. we did find some winners. roper industries is on the plus size by almost 6%. pep ko holdings up almost 5%, and best buy, ty, up 4%. all right, sue, thank you very much. that will do it for "power lunch." "street signs" begins now. it's a bicoastal "street signs." really statistic davos of the west. heavy hitters in finance, health care, politics, they are here. mandy, welcome back. we missed you. you've come back to an unbelievable lineup. tony blair is coming on. the mayor of los angeles with his first public comments around the clippers. and general -- and scott miner on the markets here.


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